But you ALWAYS have the option of shopping with your feet. 

If you get a property for $15k at auction here in SFL and it's worth $250k, you just lost your money 99/100 times.A $55 title check goes a long way.Only options you have is to rent until bank kicks you out to try and recoup some investment, if it needs fixes don't put money into it, you will not get a penny back from anyone.

What plan did you use, and did that plan become versatile during your growth?

Both options have their merits, but with the market fluctuations and my unfamiliarity with the area's real estate landscape, I could use some insight. 

It's important to explore your options thoroughly to find the best fit for your investment strategy.

Every lender can be different but there are options that allow as little as 10% down and 100% of rehab financed. 

If you are looking at more DSCR type options for a stabilized property, then you can layer in market or actual rent, taxes and insurance estimates to calculate DSCR rate.

My questions:- option #1: rent it out on a month to month basis until the bank forecloses with full disclosure to the tenant.

Another option..

More context: I need to have a small kitchen in that bedroom so not sure how to get a permit for 2nd kitchen if the option C is the most logical.